Scowen v Scowen

Case [2014] NZHC 1901


IN THE HIGH COURT OF NEW ZEALAND WHANGAREI REGISTRY

CIV 2014-488-130 [2014] NZHC 1901

UNDER Section 52 of the Trustee Act 1956

IN THE MATTER OF

the Elwyn Peter Scowen Trust

BETWEEN

SANDRA ELIZABETH SCOWEN Plaintiff

AND

ELWYN PETER SCOWEN Defendant

Hearing: (on the papers)

Counsel:

K W Clay for Plaintiff
No appearance by or on behalf of Defendant

Judgment:

13 August 2014

JUDGMENT OF HEATH J

This judgment was delivered by me on 13 August 2014 at 12.00 noon pursuant to

Rule 11.5 of the High Court Rules

Registrar/Deputy Registrar

Solicitors:
Helmore Ayers, Christchurch
Counsel:

K W Clay, Christchurch

SCOWEN v SCOWEN [2014] NZHC 1901 [13 August 2014]

[1]      Sandra Elizabeth Scowen is the daughter of Elwyn Peter Scowen.  She is the sole trustee of the Elwyn Peter Scowen Trust (the Trust).  The Trust owns a property at 343 Burwood Road, Christchurch.  Because Mr Scowen was the sole trustee of the Trust when it was settled on 25 January 2002, he remains the registered proprietor.

[2]      Mr  Scowen  has  been  diagnosed  with  Alzheimers’ Disease.    In  2013,  a medical practitioner certified that he was no longer sufficiently competent to manage his own affairs in relation to property.  Ms Scowen has been appointed as her father’s attorney in relation to property matters, under an Enduring Power of Attorney, signed for that purpose on 25 September 2012.

[3]      In terms of the relevant trust deed, a solicitor, Mr Ayers, has the power to remove and appoint trustees.   Ms Scowen was appointed as sole trustee by him, exercising that power.  Although Ms Scowen now has power to act as trustee, her appointment is insufficient to vest the Burwood Road property in her.  A Court order to that effect is required to comply with requirements of the Land Transfer Act 1952.

[4]      In those circumstances, Ms Scowen applies for an order under s 52(2) of the

Trustee Act 1956. That provides:

52  Vesting orders of land

(2)       Where  any such  order is consequential on the appointment of a trustee, the land or interest therein shall be vested for such estate as the Court may direct in the persons who on the appointment are the trustees.

….

[5]      The proceeding was filed in the Whangarei Registry of this Court because Mr

Scowen is currently resident in a Rest Home facility in that city.

[6]      I am satisfied that an order without notice to Mr Scowen is appropriate, to regularise  the  true  ownership  position  on  the  land  register.     There  are  no discretionary factors that would militate against the making of an order.   Indeed, there is a need for prompt disposition of the application because an agreement to sell

the property has been entered into.  It is conditional on the Court vesting title to the property in Ms Scowen as the substituted trustee.

[7]      I  am  also  satisfied  that  given  the  evidence  about  Mr  Scowen’s  medical condition, and the existence of an Enduring Power of Attorney as to property that is being exercised by Ms Scowen, that it is appropriate to dispense with service on him.

[8]      For those reasons, I make the following orders:

(a)       I dispense with service of this proceeding on Elwyn Peter Scowen.

(b)I make an order vesting in Sandra Elizabeth Scowen an undivided half share in 898 metres more or less being Lot 6 Deposited Plan 17270, together with an estate in Leasehold in Flat 1 Deposited Plan 70151 and  Garage  1  Deposited  Plan  70151  comprised  in  Composite Computer Register CB40D/370.

(c)      The costs of and incidental to this application shall be paid out of trust funds.

P R Heath J

Delivered at 12.00 noon on 13 August 2014

Details
AGLC
Scowen v Scowen [2014] NZHC 1901
Case
[2014] NZHC 1901
Decision Date

CaseChat Overview and Summary

Sandra Elizabeth Scowen, the daughter of Elwyn Peter Scowen, sought to have title to property owned by the Elwyn Peter Scowen Trust vested in her name as the sole trustee, following the appointment of an Enduring Power of Attorney over her father. Elwyn Peter Scowen, diagnosed with Alzheimer's Disease and deemed incompetent to manage his own affairs, had been the sole trustee of the trust when it was settled, but the property remained registered in his name. The case was heard by the High Court of New Zealand at the Whangarei Registry.

The primary legal issue was whether the court could make an order under section 52(2) of the Trustee Act 1956 to vest title to the property in Sandra Elizabeth Scowen, as the sole trustee, without requiring notice to Elwyn Peter Scowen. The court needed to consider the necessity for a court order to comply with the requirements of the Land Transfer Act 1952 and the implications of Elwyn Peter Scowen's incapacity, as evidenced by the Enduring Power of Attorney executed by Sandra Elizabeth Scowen. The court also had to determine whether the application should proceed without notice to Elwyn Peter Scowen, given his medical condition and the existence of the Enduring Power of Attorney.

The court found that an order without notice to Elwyn Peter Scowen was appropriate, as there were no discretionary factors against making such an order. The urgency of the application, due to a pending agreement to sell the property, further supported the need for prompt action. The evidence presented about Elwyn Peter Scowen's medical condition and the existence of the Enduring Power of Attorney made it reasonable to dispense with service on him. Consequently, the court made an order vesting in Sandra Elizabeth Scowen an undivided half share in the property, along with the estate in Leasehold in Flat 1 and Garage 1.

The final orders of the court were to dispense with service of the proceeding on Elwyn Peter Scowen and to vest in Sandra Elizabeth Scowen an undivided half share in the property, together with the estate in Leasehold in Flat 1 and Garage 1. The costs of the application were to be paid out of trust funds.

Orders

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Background

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